Fifth, strong support was given to agricultural production and long-term
development of the countryside. Support was focused on carrying out six types of
small rural projects [water-efficient irrigation, potable water supplies, road
building, methane production facilities, hydroelectric plants and pasture
enclosure,Tr.] to improve working and living conditions in rural areas. We
promoted comprehensive agricultural development, upgraded low- and medium-yield
farmland and supported industrialization of agriculture, resulting in an
estimated increase of 2.91 billion kilograms in grain production capacity. The
central government has decided to write off 4.486 billion yuan worth of the debt
accumulated for comprehensive agricultural development within a four-year period
beginning in 2006 to give farmers greater incentive to develop production. The
focus of spending of the 13.7billion yuan in poverty relief funds from the
central budget was on infrastructure development in poor villages, job training
for poor farm laborers looking for urban employment and industrialization of
agriculture. We strongly supported efforts to promote greater application of
agricultural technology, to develop professional farmer cooperatives, to train
rural workers seeking nonagricultural employment in the cities, to launch the
project to spread knowledge of science and technology and create a new type of
farmer and the plan to help farmers and villages prosper through science, and to
promote the action plan for helping farmers and counties prosper through science
and technology.
Sixth, strong support was given to the establishment of a mechanism for
diversified funding to support agriculture. We carried out a pilot project to
integrate government funding to support agriculture in 162 counties in the
country to improve the performance of government funds. We actively explored
various mechanisms such as projects run by the local people and subsidized by
the government to increase local farmer investment. We strongly supported the
development of a rural financial system. In 2006 the central government
appropriated 2.931 billion yuan in inflation-proof interest subsidies for rural
credit cooperatives in selected areas and extended the policy on income tax
reductions and exemptions by three years to credit cooperatives in selected
areas to gradually reduce their longstanding debts, help drive their future
development and give more play to their role as a major force in building a new
socialist countryside. All these measures promoted agricultural production,
increased rural incomes and stepped up progress toward balanced development
between urban and rural areas.
4. Key expenditures were guaranteed in order to accelerate the development of
all social programs. We directed more government spending toward social programs
to shore up weak links in social development and balance economic and social
development in order to truly reflect the public nature and public welfare
nature of public finance, which represent its essential character.
First, we supported employment and reemployment work and development of the
social safety net. Government spending in the country for employment and the
social safety net in 2006 was 433.765 billion yuan, up 17.3% compared to the
figure for 2005, representing 109.1% of the budgeted figure. Allocations from
the central budget totaled 201.002 billion yuan, an increase of 22.9%.On the
basis of the trials in the three northeastern provinces to fully fund individual
retirement accounts for the basic pensions of workers retiring from state-owned
enterprises (SOEs), the trial was extended to eight more provincial-level
localities. We worked to ensure appropriate linkage between the urban minimum
cost of living allowance system and employment and reemployment policies. We
strongly supported the development of a rural medical assistance system in the
central and western regions, the pilot program to provide medical assistance to
urban residents in poor areas and the work of providing food, clothing, medical
care, housing, and burial expenses for childless and infirm rural residents. We
conscientiously carried out a strong employment policy and improved
implementation measures to help SOEs in financial straits find appropriate
solutions to their longstanding problems. We worked hard to assist in solving
the problems of demobilized military personnel, including those working in
enterprises as cadres, to help them adjust to civilian life. It is particularly
worth noting that the central government promptly appropriated relief funds
amounting to 11.2 billion yuan to vigorously support relief efforts in response
to serious natural disasters, complemented by funds from local governments.
